Correlation Between Karya Bersama and Nusantara Almazia
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Nusantara Almazia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Karya Bersama and Nusantara Almazia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Nusantara Almazia, you can compare the effects of market volatilities on Karya Bersama and Nusantara Almazia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Karya Bersama with a short position of Nusantara Almazia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Nusantara Almazia.
Diversification Opportunities for Karya Bersama and Nusantara Almazia
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Karya and Nusantara is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Nusantara Almazia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Almazia and Karya Bersama is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Karya Bersama Anugerah are associated (or correlated) with Nusantara Almazia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Almazia has no effect on the direction of Karya Bersama i.e., Karya Bersama and Nusantara Almazia go up and down completely randomly.
Pair Corralation between Karya Bersama and Nusantara Almazia
Assuming the 90 days trading horizon Karya Bersama Anugerah is expected to under-perform the Nusantara Almazia. But the stock apears to be less risky and, when comparing its historical volatility, Karya Bersama Anugerah is 1.25 times less risky than Nusantara Almazia. The stock trades about -0.06 of its potential returns per unit of risk. The Nusantara Almazia is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 12,400 in Nusantara Almazia on September 12, 2024 and sell it today you would lose (5,200) from holding Nusantara Almazia or give up 41.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Nusantara Almazia
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Nusantara Almazia |
Karya Bersama and Nusantara Almazia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Nusantara Almazia
The main advantage of trading using opposite Karya Bersama and Nusantara Almazia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Nusantara Almazia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nusantara Almazia will offset losses from the drop in Nusantara Almazia's long position.| Karya Bersama vs. Royalindo Investa Wijaya | Karya Bersama vs. Mitrabara Adiperdana PT | Karya Bersama vs. PT Multi Garam | Karya Bersama vs. Bank Ina Perdana |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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